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why are founders agreements so important for startups most people come to lawyers after theyve had a falling out with founders whether its a huge disagreement or where they feel unfairly treated by that time its too expensive and complicated to resolve the issue the main purpose of a founders agreement is to prevent these issues from happening and preemption the common issues these are the top 3 things we think matters 1. shareholders agreement versus founders agreement if youre a startup we recommend entering into a founders agreement first a shareholders agreement is typically designed with the assumption that roles have been clearly defined and the business direction is fixed but when youre a startup testing a new idea youll likely pivot several times before setting your final direction we think it makes sense to nail down your shareholders agreement once your mvp is set 2. kpis many startups start as a side hustle and a top complaint is that one founder is putting in more e